What is a FICO Score?
Defining the FICO Score
A FICO Score is a three-digit number, ranging from 300 to 850, that summarizes your creditworthiness. Lenders use it to predict how likely you are to repay debts.
Why is the FICO Score Important?
Your FICO Score determines:
- The interest rates you’ll pay on loans and credit cards.
- Whether you’ll be approved for housing or loans.
- Access to special financial offers, like rewards credit cards.
FICO Score Ranges
- Poor (300-579): You may struggle to get credit.
- Fair (580-669): You’ll qualify for some loans but may face higher interest rates.
- Good (670-739): You’re a low-risk borrower in the eyes of most lenders.
- Very Good (740-799): You’ll get better interest rates and terms.
- Exceptional (800-850): You have excellent credit and access to the best offers.